The Rest of Canada 1
Feb 23, 2016
The Rest of Canada
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Outline
Ontario energy policy Big picture FIT BC comparisons
NEP Canadian energy policy in 2010s
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New temporary group assignments Major Power
Consumers Association of Canada
CEP Union (COPE) Canadian Wind
Energy Association (Alterra)
Assembly of First Nations
Public Interest Advocacy Centre of Canada
Pembina Institute Wilderness
Committee CAPP (Clean
Energy BC)
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Ontario Fuel Mix
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Governance
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Shifting problem definitions 1990s: cost Public health (note
Walkerton focusing event)
Supply Economic
development
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Green Energy and Green Economy Act – May 2009 - Objectives
Attract investment in renewable energy
Promote a culture of energy conservation
Create a competitive business environment
Increase job opportunities Reduce GHGs
Note: also ambitious coal phase out by 2014
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ON instruments (Rowland)
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BC comparisons?
Much more governance complexity in Ontario
Both struggling with long term energy plan approval relationship between regulatory
commission and cabinet Both turned to rely on bidding system
Ontario now dominated by Feed-in, limited in BC
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Ontario conclusion
How many times were other provinces or the Government of Canada mentioned in either article?
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The NEP and Legacy Trudeau
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Prelude to NEP 1957-1961 1959 – National Energy Board
Created 1961 – National Oil Policy
two market policy▪ east of Ottawa Valley, cheap imported
Venezuela oil▪ Ontario and west, more expensive Canadian
oil▪ delivered by Trans-Canada Pipeline▪ continental price under umbrella of US
protectionism▪ growing exports to US
Rapid growth in oil and gas industry
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Prelude to NEP 1973-1980 1973 – OPEC oil embargo
link to global geo-politics: Arab-Israeli War price controls on domestic crude oil and natural
gas subsidized consumption by refiners through oil
import compensation program (OICP) 1975 – Petro-Canada established
foster resource development increase federal government information about reserves
1979 – Iranian revolution led to world price doubling gap between Canadian prices and world prices increased
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1980 Political Economy of Energy in Canada Oil coalition: federal
Conservative Party, western provincial governments, and oil industry rapid convergence to
world prices smaller federal share of
revenues privatization of Petro-
Canada enabling foreign
ownership
Federal Coalition: federal Liberal and NDP Party, central and eastern provincial governments slower increase in prices larger federal share of
revenues strengthening of Petro-
Canada regulation on foreign
ownership
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National Energy Program October 1980 budget “a centralist, nationalist and
interventionist political and policy initiative which at its core was intended to substantially restructure the key relationships of power and the sectoral and regional distribution of wealth in Canadian energy politics” (Toner and Bregha 1984).
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National Energy Program 1980 3 goals
security of supply▪ Petroleum Incentive Program (PIP) encouraged
exploration and development Canadianization
▪ 50% Canadian ownership by 1990 (from 29%)▪ PIP criteria favoured Canadian firms on Canada Lands▪ enlarge Petro-Canada through acquisitions
interregional equity in price and revenue sharing▪ 8% Petroleum and Gas Revenue Tax (PGRT)
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Backlash Against NEPcbc retrospective video
Universal industry opposition Vehement opposition by Alberta – led
by Premier Peter Lougheed cutback in oil production cancellation of 2 oil sands projects
Compromise of 1981 produced a new pricing system old domestic oil increased to 75% world
price new conventional oil at world price
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NEP denouement
Beginning in 1982, world oil prices began to plummet
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NEP denouement
Oil price decline after 1982 Mulroney Era (Progressive
Conservative) begin in Fall 1984 Western Accord effectively
dismantled NEP deregulated oil prices phased out PGRT
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NEP Enduring Legacy
Lesson: mistaken federal government overregulation
Strengthened Alberta’s anti-Ottawa tendencies
Revived as a bogey-man to discredit major federal energy-related initiatives including climate action
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Canadian Energy Strategy for 2010s
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EPIC recommendations Improve Canada’s regulatory regime by eliminating
overlapping and inconsistent requirements at the federal, provincial, and municipal levels.
Enhance Canada’s energy security by moving beyond our historical reliance on the United States and capturing growth opportunities in Asia and elsewhere.
Adopt interim carbon pricing measures, and define the criteria that should inform the design of a long-term carbon-pricing regime in Canada.
Promote greater public knowledge of energy’s impact on our economy, environment, and society – with a view to increasing conservation behaviour.
Foster energy innovation by encouraging more private sector investment in game-changing technologies
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New temporary group assignments Major Power
Consumers Association of Canada
CEP Union (COPE) Canadian Wind
Energy Association (Alterra)
Assembly of First Nations
Public Interest Advocacy Centre of Canada
Pembina Institute Wilderness
Committee CAPP (Clean
Energy BC)
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